LowCards.com Weekly Credit Card Update–March 1, 2019

LowCards.com Weekly Credit Card Update–March 1, 2019

March 1, 2019         Written By Bill Hardekopf

Spending on Mastercard and Visa Cards Rose 9.5% in 2018
Spending for goods and services generated by Mastercard and Visa credit, debit, and prepaid cards issued in the United States was $6.021 trillion in 2018, an increase of 9.5% over 2017. Visa purchase volume market share, at 70.56% for 2018, was down from 70.65% in 2017. This was the first time Mastercard had increased its market share versus Visa since 2012, according to The Nilson Report. Visa credit card purchase volume grew 10.1% last year to $1.956 trillion. Mastercard credit card purchase volume reached $810.90 billion, up 9.1%. In 2018, the credit card average purchase amount was $84 for cards issued in the U.S., up 0.9% versus 2017. Visa’s average credit card purchase amount was $82. Mastercard’s average credit card purchase amount was $89. Story in the Global Newswire

JPMorgan Sees a $250 Billion Opportunity in New Credit Card Loan Features
JPMorgan Chase, the largest U.S. credit card issuer, is rolling out new features as it seeks to capture more of the $250 billion that its customers borrow from other firms. The company is unveiling “My Chase Plan” to better compete in point-of-sale financing. The tool allows card customers to select from past purchases of more than $500 and choose to finance them over a longer period with monthly fees instead of being charged interest. The bank will also introduce “My Chase Loans,” which allows targeted card customers to borrow against unused credit card lines. Clients can use the Chase mobile app to select a loan amount to be transferred into their checking accounts. Story by Jennifer Surane and Michelle Davis for Bloomberg

Artificial Intelligence is Changing Credit Cards and Banking
Some major credit card providers are using artificial intelligence to make it easier to not just choose your rewards, but offer the rewards consumers want the most. In this drive for hyper-personalization of our rewards, artificial intelligence banking is benefiting all parties involved. According to a recent study, 33% of customers who abandoned a business relationship did so due to lack of personalization. But artificial intelligence in banking is changing that. Deployed by major banks including HSBC and Bank of America, AI and predictive analytics make it easier for banks and loyalty program issuers to determine what rewards consumers will want at any given time and offer those rewards, along with incentives to use their card for future, similar rewards. Story by Dawn Allcot for Bankrate

Gen Z, Millennial Shoppers Driven by Price, Rewards
New research adds weight to the notion that young consumers are driven more by price than brand. According to survey results from payment solutions provider Swift Prepaid Solutions, price matters most to Gen Z and young Millennial shoppers. More than 80 percent of those surveyed said cost is the most important factor when making a purchase. Just over 200 18 to 29 year olds were surveyed. They’re also a rewards-driven group, with 83 percent showing greater loyalty to brands that provide rewards and surprises. The survey of younger consumers also found that 50 percent believe name brands are much more expensive than private labels, and 60 percent report being neutral on brand names versus private labels. Amazon, Target and Walmart are among the big retailers that have launched a number of private labels over the past several years. Story by Caitlin Mullen for BizWomen

What Consumers Need to Know about the Upcoming Credit Card from Apple and Goldman Sachs
Apple and Goldman Sachs are expected to launch a joint credit card later this year that is designed to be used in concert with the iPhone and Apple Pay. Apple will diversify its revenue base through the swipe fees it will earn, while for Goldman, the credit card fits neatly into the investment bank’s push into consumer-facing financial services. Despite the allure the new credit card may have, consumers may want to think twice about signing up. Here is what consumers need to know: The card is being designed to promote Apple Pay Mobile payments can affect how you spend money. When it comes to rewards, this card won’t be a game-changer. Goldman Sachs could use your data to sell you other loans. Story by Jacob Passy for MarketWatch

Amazon Prime Users Can Now Choose Their Delivery Days
Amazon has launched a new service for Prime members. Starting today, Prime customers can select which day of the week they want to receive deliveries through a program called Amazon Day. With Amazon Day, shoppers can group their purchases together to ship at one time. This could reduce the number of packages for the order, which cuts down on costs and the environmental impact. Amazon Day is part of Amazon’s Shipment Zero project. The company aims to have 50% of its shipments reach net zero carbon by 2030. Net zero refers to an environmental movement where businesses utilize renewable energy to reduce their carbon footprint. Story by Bill Hardekopf for LowCards.com

Equifax Expecting Punishment from CFPB and FTC over Massive Data Breach
Equifax is expecting various forms of punishment from the Consumer Financial Protection Bureau and the Federal Trade Commission over the credit reporting agency’s massive data breach that exposed the personal information of 148 million U.S. consumers to hackers. The company revealed the expected sanctions in a recent filing with the Securities and Exchange Commission. According to Equifax, the CFPB and FTC have both notified the company that they expect to seek “injunctive relief damages” in regards to the data breach. Beyond that, the CFPB plans to seek “civil money penalties.” Story by Ben Lane for Housing Wire

Sonic Branding Continues to Gain Popularity as Mastercard Launches Its Own Sound
Mastercard released its own sonic branding, a new sound that will help consumers recognize the brand when they make purchases with their Mastercard or when they see an ad for the brand on TV. Mastercard isn’t the first in its category to create a sound of its own. Just over a year ago, Visa debuted its own sonic branding ahead of the 2018 Winter Olympics. So why has Mastercard decided to hop on the trend? “The world around us is transforming at an incredible pace, impacting how consumers engage with everything around them, and that includes brands,” said Mastercard’s chief marketing and communications officer Raja Rajamannar. “The latest example is the ascent of audio in our lives-hundreds of millions of people are already using smart speakers, and voice shopping alone is set to hit $40 billion by 2022.” Story by Katie Richards for AdWeek

Citi Says Customers in Singapore Can Now Pay for Rent and School Fees Using its Credit Cards
Citi said Tuesday it is launching a digital payment service that allows users to pay rent and school fees every month using the bank’s credit cards. The service, called PayAll, can be accessed from Citi’s mobile app and every transaction would incur a fee payable to the bank. It is currently available in Singapore where average transactions are around $3,500. The service is expected to be available in Hong Kong, the United Arab Emirates and Thailand by the end of the year. Story by Saheli Roy Choudhury for CNBC

Have More or Fewer Consumers Reported Credit Card Fraud since 2015?
Here are some results from Mercator Advisory Group’s report, “Consumers and Credit: Rising Usage.” There’s been a 6% decline since 2015 in consumers reporting lost, stolen, or fraudulent activities on their credit card. In 2015, 30% of consumers reported lost, stolen, or fraudulent activities In 2018, 24% reported the same. In 2016 interest in mobile account controls peaked with 47% of consumers interested Today, 39% of consumers are equally interested. The greatest interest for account controls is around spending: 28% of consumers would use to limit payments over a dollar amount. Story in Payments Journal

New Debit Card Features Penny Hardaway
Penny Hardaway has been immortalized…on a debit card. First Tennessee Bank unveiled a new Visa debit card featuring Penny Hardaway. First Tennessee will also donate $15,000 to the Penny Hardaway basketball camp, which gives kids 8-17 a chance to learn skills from Hardaway and other former and current Memphis Tigers. The donation will help reduce the cost of the camp for its participants. Story by WMC Action News

Additional Stories on LowCards.com (follow @LowCards on Twitter to receive these in real time):
Credit Cards and Taxes-5 Tips for the Tax Season

Could JPMorgan’s Cryptocurrency Be Used by Consumers?

Bank of America Rebrands Its Investment and Wealth-Management Businesses

What Are Virtual Credit Cards?

How a Personal Loan Affects Your Credit Score  

LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for 18 years. For more information, contact Bill Hardekopf at 1-205-985-9725 or billh@LowCards.com. Follow our tweets: @lowcards

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
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